Here’s how this works…
Each week we’ll introduce you to one new investing term that you’ll need to know if you want to start investing.
Then we’ll provide a summary of the past week’s financial news and explain why it’s relevant to you as a beginner investor and, more importantly, how you can use this knowledge to your advantage.
So, let’s get cracking!
TERM TO LEARN
A STOCK REPRESENTS A SHARE OF OWNERSHIP IN A COMPANY. WHEN YOU BUY A STOCK, YOU’RE PURCHASING A SMALL PIECE OF THAT COMPANY, CALLED A SHARE:
Stocks give stockholders partial ownership in a company.
Companies sell shares to raise money for growth and other purposes.
Investors buy stocks hoping the value will increase over time, allowing them to sell for a profit.
Stock prices fluctuate based on supply and demand in the stock market.
INVESTMENT NEWS FOR BEGINNERS
UK economy saw zero growth in July.
The UK’s economy did not grow at all in July 2025 — it stayed the same as the previous month. This follows small growth in June (+0.4%). The main reason for zero growth was a drop in manufacturing, which is when companies make and produce goods. The services sector (like health, computer jobs, and office work) grew a bit, but this wasn’t enough to offset the fall in manufacturing. Overall, the economy’s growth is slowing down, and some experts think it could be a sign that things might not get much better in the coming months.
Why this matters to you…
When the economy isn’t growing, companies and people often earn and spend less. This can affect company profits and stock price.
If weak growth continues, it may cause the government or the Bank of England to change things like taxes or interest rates, which can impact the value of investments, personal savings, loan costs, and inflation.
Markets and investment choices can react strongly to this kind of news, so knowing about economic growth helps investors avoid surprises and make smarter decisions
What you need to do…
Pay attention to news about how the economy is growing or shrinking, because this can affect both the stock market and personal finances. When the economy is flat or shrinking, stock prices may become more unpredictable and government policies might change. So, it’s important for beginners to avoid risky bets, consider a mix of investments, and keep steady with a long-term plan even when headlines sound worrying.
Fund managers dumping UK stocks at fastest rate in two decades.
Professional fund managers are selling off UK stocks at the fastest pace seen in over 20 years. In September 2025, their average allocation to UK stocks dropped dramatically from a small underweight position to a very large underweight one, meaning many are reducing or avoiding UK shares. This is mainly because investors are worried about the UK’s weak economic growth and the possibility of significant tax increases in the upcoming government budget. The UK economy is showing signs of stalling, with stagnant GDP and falling employment in some sectors. Fund managers are cautious because they fear these factors could impact company profits and investment returns.
Why this matters to you…
Changes in fund managers’ behavior can significantly affect UK stock prices and overall market confidence.
Economic weakness and tax hikes may make UK companies less profitable, so their share prices may fall or be more volatile.
Understanding why professionals change their investment decisions helps beginners see broader economic trends and risks that influence the market.
What you need to do…
When major investors are pulling back from a market like the UK, it’s a signal to review your own investment plan. Beginners should avoid rushing to sell out of fear but should consider diversifying internationally or into assets less affected by local risks. Keep a long-term perspective and monitor economic news, but don’t make sudden moves based on short-term market panic.
Tesla stock near its 2025 high after 5-day win streak.
Tesla’s stock price has been rising steadily for five days in a row, bringing it close to the highest levels it reached in 2025. This positive momentum is largely due to CEO Elon Musk buying about $1 billion worth of Tesla shares, which many investors see as a sign of confidence in the company’s future. The stock’s current price gains have sparked interest in some key “support” and “resistance” price levels that traders watch to predict possible next moves in Tesla’s share price.
Why this matters to you…
When a company’s CEO buys a large number of shares, it often signals belief in the business’s success, which can encourage other investors.
Tesla is a high-profile stock that affects tech and electric vehicle market sentiments, so its price movements can influence overall market mood.
This news shows how major trading decisions and personal actions by company leaders can impact stock prices, which is important for beginner investors to watch.
What you need to do…
Don’t just follow stock price increases blindly. Instead, look for the reasons behind price movements, like leadership confidence or company announcements. Also, learning about “support” (price levels where stocks tend to stop falling) and “resistance” (price levels where stocks may struggle to rise further) can be helpful tools to better understand when to buy or sell shares.
Thanks for reading this second edition.
We’ll be back next Wednesday to add another investment term to your vocab and continue to help you translate the otherwise confusing world of financial news.
After all, why should the finance bro’s have all the fun?!